Will the dollar fall in value?

[jiacinto]

Discuss? Is a currency crisis looming in the US?

[Tatiana]

1. You betcha.

The dollar is falling. And with our record-breaking national debt that we carry, what foreign entity will want to invest in us? Euro will probably gain.

Bush has really f**ked this economy.

[salin]

2. bush is trying to convince China to repeg their currency

in an effort to decrease the trade deficit. It has been noted that this is a very, tricky and possibly dangerous move - as it could swing things around quickly and lead to serious devaluation of the dollar.

[nothingshocksmeanymore]

9. But doesn't it also devalue loans we made?

[RichM]

16. Sure, in a sense. If the dollar goes down, EVERYTHING denominated

in dollars goes down. So in a sense, the entire US stock & bond markets and everyone's bank accounts -- all of these things go down, relative to other currencies. But someone living here doesn't feel a lot of the change, because everything here is denominated in dollars too, so there's no relative change.

The only things you'd feel right away are that imported goods are more expensive, & vacations abroad get more expensive.

[Hieronymus]

3. It's happened .....

The euro has gone from about $.85 to about $1.17 now.
Russia is about to do trade for oil in euros. It's a good investment.:grr:

[tritsofme]

4. Weak dollar

and strong euro isnt just bad for us, it hurts Europe too. While a weaker dollar should help our exports, the strong euro hurts European exports, and it has probably kept them in deeper recession than we have experienced. In Germany and France unemployment is about 10% or more, and they are struggling to show even small growth in GDP.

Europe also has a looming population crisis that makes our SS worries look like a cake-walk. They need either much higher birth rates, or massive immagration, and soon to support their generous pension plans.

However if OPEC starts to trade oil in euros, that the dollar and this country are in for a lot trouble.

[lostnfound]

5. IMF Chief economist said 'danger of imminent collapse'

a month or two ago.

[La_Serpiente]

6. Notice the word "imminent"

At least his statements has substance to back it up.

[fabius]

7. Yep

Banana republic here we come. Make our exports cheaper anyhow. Maybe we can have Nike factories over here.

[jeter]

8. It's already fallen by about 25%

And the decline continues.

[TrogL]

10. It's already dropping like a rock

with no end in sight.

The loonie, as a result, is way too high and it's hurting our economy.

[unblock]

11. yup, we have a major client in canada

strictly speaking, we should be hedging against currency risk since that's not our business. but i can't bring myself to lobby strongly for this as we feel more comfortable with a CAD revenue stream than by locking into the USD rates.

i'm predicting a further 15% devaluation in the USD in the next year.

[tritsofme]

13. No

I think that by the end of next year we will be facing levels of inflation in excess of 3% as business investment increases it will be crowded out by the massive federal deficit and interest rates will be much higher.

[no_arbusto]

12. Already has

How about this:

Jan. 20, 2002
1 US Dollar = 1.94 Australia, 1.61 Canada, 1.13 Euro, 0.69 UK Pounds

Oct. 24, 2003
1 US Dollar = 1.42 Australia, 1.30 Canada, 0.84 Euro, 0.58 UK Pounds

www.xe.net (the most accurate site for currency info)

[FlemingsGhost]

14. Like you wouldn't believe, Carlos.

When the rest of the world final decides to completely divest in U.S. interests, (as a means of resistance to BushCo's imperial hegemony) and embraces the Euro as THE trading currency, the dollar will sink like a stone. Industrialized nations don't need military might to defeat the U.S. empire, they need to unite, steer clear and watch us spend ourselves into oblivion. Think Cold War Russia.

"Brother can you spare a dime"...

(on edit: typo)

[Clete]

15. The last importantly destructive fascists on this planet

deliberately caused inflation and then got a infusion of gold from some rather scared backers to pay off debts at the deflated rate, essentially robbing the debtors legally. I don't know if Greeny is going to go for it, but he's getting so old, a little heart attack might take care of things, or a big change in his thinking about how he does things could keep him around for awhile.